Submitted By:-

THE BUSINESS CONSORTIUM (SEC B)

Nabil S. Muhammed (9028) Deepak Nair (9089) Chandan J. Singh (9071) Jayakrishnan R (9078) Jith Joyson (9019) Karthick K(9113)

IGCL IN ACTIVATED CARBON INDUSTRY

A BUSINESS MARKETING REPORT

Contents
1. INTRODUCTION...................................................................................................................................................................................2 1.1 ACTIVATED CARBON...................................................................................................................................................................2 1.2 ACTIVATION PROCESS................................................................................................................................................................2 1.3 APPLICATIONS...............................................................................................................................................................................2 2. MARKET ATTRACTIVENESS............................................................................................................................................................2 3. ABOUT IGCL:........................................................................................................................................................................................3 4 SWOT ANALYSES.................................................................................................................................................................................3 4.1 INTERNAL ENVIRONMENT.........................................................................................................................................................3 4.2 EXTERNAL ENVIRONMENT........................................................................................................................................................4

CARBON INDUSTRY A BUSINESS MAR 4.3 SWOT MATRIX FOR IGCL............................................................................................................................................................5

5. MARKETING MIX:...............................................................................................................................................................................5 5.1 PRODUCT:........................................................................................................................................................................................5 5.2 PRICING...........................................................................................................................................................................................7 6. ORGANIZATIONAL BUYING DIMENSIONS...................................................................................................................................7 6.1 TENDERING PROCESS BY PSUS................................................................................................................................................7 6.2 PRIVATE SECTOR CLIENTS.........................................................................................................................................................7 6.3 TRADERS.........................................................................................................................................................................................7 7. COMPETITOR ANALYSIS...................................................................................................................................................................7 7.1 NORIT ACTIVATED CARBON .....................................................................................................................................................7 7.2 CALGON CARBON CORPORATION ...........................................................................................................................................8 7.3 Donau Carbon gmbh & Co. KG .......................................................................................................................................................8 8. MARKET SEGMENTATION................................................................................................................................................................8 8.1 INDUSTRIES USING POWDERED ACTIVATED CARBON (PAC)...........................................................................................9 8.2 INDUSTRIES USING GRANULAR ACTIVATED CARBON (PAC)...........................................................................................9 9. MARKET POTENTIAL.......................................................................................................................................................................10 10. PROMOTION.....................................................................................................................................................................................11 11. DISTRIBUTION CHANNEL.............................................................................................................................................................12 12. CRM....................................................................................................................................................................................................12 13. CONCLUSION..................................................................................................................................................................................12 13. CONCLUSION

Submitted To: Prof. Rangan Mohan

2|

IGCL IN ACTIVATED CARBON INDUSTRY

A BUSINESS MARKETING REPORT

1. INTRODUCTION
1.1ACTIVATED CARBON
Activated Carbon is a crude form of graphite and generic term used to describe a family of carbonaceous adsorbents possessing a highly crystalline form and extensively developed internal pore structure. This unique structure of Activated Carbon produces a very large surface area 1 gram of activated carbon has a surface area in excess of 500 m2 (about one tenth the size of a football field) Activated Carbon can be produced from a wide variety of carbonaceous raw materials including:

The choice of raw material has a large influence on the characteristics and performance of the AC, each producing an AC with differing surface areas, total pore volume, pore radius and pore volume distribution.

1.2 ACTIVATION PROCESS

The process of activation is carried out in two stages viz. carbonization and activation. Carbonization involves heating to a high temperature in an inert atmosphere. Activation involves reaction with steam under carefully controlled conditions to develop specific pore structures and adsorptive properties. The specified structure of carbon gives it a very large surface area which allows the carbon to adsorb a wide range of compounds, thus helping its purpose of refining and purification. Activated Carbon of three grades namely powder, granular and pelletized finds hundreds of different applications.

1.3 APPLICATIONS
Activated carbon finds numerous domestic and industrial applications like: Water treatment Purification of drinking water and ground water, treatment of industrial and municipal wastewater. Food Processing Purification and de-odorisation of edible oils and beverages before bottling. Precious Metal recovery To extract gold from ores or tailings in gold mines. Air purification Conditioning of air, solvent recovery and environmental protection from pollution. Protection Equipments Car cabin filters, gas masks, cigarette filters etc. Catalyst Applications- Activated carbon can catalyze a number of chemical conversions or can be a carrier of catalytic agents.

2. MARKET ATTRACTIVENESS
Carbon adsorption has many applications in removing pollutants from water and air. The Kyoto protocol has emphasized the reduction of greenhouse gas emissions into the atmosphere. Increased awareness about pollution and the ubiquitous pressure to Go Green has increased the demand for products like activated carbon which have cleansing power and which can also be regenerated. It is used in water treatment technology and also removing volatile organic impurities. It is reported that the renewable water availability in the Gulf Region is fast depleting and will reduce to 50% per capita in the next 40 years. It is also estimated that the per capital availability of water would fall to 550 cubic meters from the present 1100 cubic meters by the year 2050. The need to comply with ISO standards and stipulations has increased the market for adsorbents. Another driver will be governmental regulations and enforcement in environmental related applications

3. ABOUT IGCL:
Indo German Carbons Limited (IGCL), incorporated in the year 1995 is a 100% EOU under Cochin Special Economic Zone (CSEZ). The first phase of the plant was commissioned in 1998 .The registered office and factory of IGCL is situated at Edayar 3|

IGCL IN ACTIVATED CARBON INDUSTRY

A BUSINESS MARKETING REPORT

Industrial development area, Cochin, Kerala. The company is situated in the strategic location of the industrial hub of Cochin and is very near to the international container terminal and also to the Cochin International Airport. The Company is the largest manufacturer and exporter of all kinds of coconut shell based Activated Carbon products from India and is also one among the first five in the world in Activated Carbon industry.

Scope:
IGCL is now the third largest in the world in the production of coconut shell-activated carbon and steps are being taken to increase production to 20,000 tons per year from the present 14,000 tons. IGCL is also planning to set up a manufacturing unit in Karnataka at an investment of Rs.10-15crore and with this; the total manufacturing facilities will be five. In 2008, IGCL had launched its subsidiary company in the US, IndoCarb Corporation Inc. to expand sales and marketing activities across the world and to provide technical support to the end users. As the latest step in the direction of fostering its international sales, the sales office in Australia has become operational from March, 2010. In addition, the company is also planning to launch offices in Korea and the Middle East. Though basically an export oriented unit, IGCL is constantly exploring opportunities in the Indian domestic market and are making rapid strides in expanding the Indian customer base. Indo German Carbons Ltd. have three sister concerns namely, M/s. Cochin Surfactants Pvt. Ltd (CSPL), M/s. Active Char Products Pvt. Ltd (ACPL) and Genuine Shell Carb Pvt Ltd. All the units are 100% EOUs. CSPL and ACPL are also located in the Edayar Industrial development area while Genuine Shell Carb is located in Coimbatore, Tamilnadu.

4 SWOT ANALYSES
4.1 INTERNAL ENVIRONMENT
Strengths
Indo German Carbons Ltd. together with the 3 group companies possesses a production capacity of more than 14000 tons per annum, the highest by an activated carbon manufacturer in India. IGCL has the advantage of a strategic location with the nearby modern seaport and Cochin international airport despite the abundant local availability of raw material and resources. The location of the plant at Cochin, Kerala is perhaps the best strategic location for a coconut shell based activated carbon plant. More than 40% of Indias total coconut is grown in Kerala and the quality and hardness of the shells in the region are considered as one among the best available. Over the years, Indo German Carbons Ltd. has equipped itself with a wide and reliable supplier network from the unorganized sector extending across the South Indian states mainly Kerala, Karnataka and Tamilnadu. IGCL employs the state-of-the-art technology to meet the quantity and quality in its production. The technology outsourced from Germany is the best available process and equipment for manufacturing high quality activated carbon. Indo German Carbons Ltd. has some reputed names from the domestic and international business sector in its customer base. In the international market, IGCL exports supplies to bigwigs like Norit group, Marlyn chemicals and number of gold mines based in the US and South Africa. Domestic client base includes giants from both public and private sector like HLL, MRPL, and NTPC etc. Repeat business with the customers has always been a strong contributor to IGCLs growth. Though basically an export oriented unit, IGCL is slowly and steadily exploring opportunities in the Indian domestic market in expanding its reach.

Weaknesses
On the financial side, the company experiences a relatively weaker liquidity position. Putting in simpler terms, on an average basis, the firm requires paying off its creditors and suppliers in one month but it takes around 3 months for the firm to convert its account receivables from the customers. An amount of credit crunch comes into play as the firm is required to keep a stock of the inventory on account of its scarcity due to increased competition. An increased competition is witnessing lot of activated carbon manufacturers entering the market who supplies product at a far cheaper rate than IGCL. Though quality wise such products lay far inferior to the IGCL products, the low price helps them to 4|

IGCL IN ACTIVATED CARBON INDUSTRY

A BUSINESS MARKETING REPORT

attract customers to some extent. Though its a perceived threat, it could be considered as a weakening factor as its related with the pricing of the companys product which is indeed an internal factor.

4.2 EXTERNAL ENVIRONMENT

Opportunities
IGCL has opportunities galore in the present market conditions World demand for virgin activated carbon is forecast to expand 5.2 percent per year through 2012 to 1.2 million metric tons. The US, China and Japan will together continue to account for almost half of global demand in 2012 which could prove a vital area for Indo German to concentrate on. Activated carbon industry will benefit from a continuing intensification of the global environmental movement as well as rapid industrialization in much of the developing world. Government regulation changes and enforcement (eg: The US Disinfection By products Rule that was promulgated in 2006) will significantly impact demand in environmentally driven applications. It is reported that the renewable water availability in the Gulf Region is fast depleting and will reduce to 50% per capita in the next 40 years. It is also estimated that the per capita availability of water would fall to 550 cubic meters from the present 1100 cubic meters by the year 2050. IGCL could find a potential market in the middle-east where there is an unprecedented concern for waste water treatment, oil contaminated sea water treatment, flue gas treatment from power plants and treatment of hazardous waste. Apart from the current crop of value added products, IGCL could look forward to launch R & D activities for increasing it. IGCL has a potent opportunity in widening its value added product range to Alkali and Sulphur impregnated activated carbon which has a strong demand in the market.

Threats
The company senses a potential threat in the emergence of new competitors in the market. Few of the big players from international market have started their subsidiary in India, which may dent the market share of IGCL. The emersion of new players could also put a scarcity in the availability of raw materials for the firm. On the supply side, the company faces a threat from the skyrocketing price of its valuable raw material- Charcoal. On an average, the purchase rate of charcoal per metric ton was Rs.7900 during the year 2007-09, which almost doubled to Rs.14500 per ton during the year 2009-10.

5|

IGCL IN ACTIVATED CARBON INDUSTRY

A BUSINESS MARKETING REPORT

4.3 SWOT MATRIX FOR IGCL

Strength Opportunities Increased demand for virgin activated carbon Strictening of Govt. rules and regulations regarding environment Depletion of renewable water availability in Gulf regions Increased demand for Alkali and Sulphur impregnated activated carbon Highest production capacity for activated carbon in India Strategic Location Advantage Wide and Reliable suppliers network State-of-art technology Reputed customer base Weakness Weaker liquidity position Lack of competitive pricing

SO Strategies The increased demand can be met with the help of the existing production capacity and technology. It can use its strategic location advantage to cater to the needs of its gulf customers

WO Strategies As the rules on regulations become strict, it can use it to improve its pricing. As the demand is forecasted to increase, the accounts turnover ratio will also increase. It will help to curb the credit crunch of the company.

Threats Entrance of big international players Availability of resources Highly volatile raw-material prices.

ST Strategies Efforts should be made to retain the existing customer base so that the competition in the form of new entrants becomes insignificant. Supplier network should be strengthened even more so that the effects of raw material volatility can be absorbed.

WT Strategies Backward integration

5. MARKETING MIX:
5.1 PRODUCT:
Brand Name and Product variety: IGCL product template consists of an array of products for a wide range of applications under the brand name INDOCARB. The grades of the brand indicate the typical application. 1. INDOCARB GC grades of carbon are made especially for use in gold recovery applications. 2. INDOCARB WT grades of carbon are ideal for any liquid phase application where purification to trace concentrations is required like that in potable water purification and also in waste water treatment. 3. INDOCARB VP grades of activated carbon are best suitable for air purification applications like removal of solvents and hydrocarbons, deodorization and flue gas treatment, removal of contaminants from gases and solvent recovery. Product sizes:

6|

IGCL IN ACTIVATED CARBON INDUSTRY

A BUSINESS MARKETING REPORT

Product Specifications: The Broad Specifications of IGCLs products are: CTC adsorption Iodine adsorption Surface area Hardness Apparent density Moisture content Ash content pH 40 to 65% 800 to 1250 mg/g 850 to 1300 sq. m/g 97 to 99.8 350 to 550 grams/litre Less than 5% Less than 5% Alkaline

Quality: Well-equipped in- house laboratories with highly qualified and skilled technicians guarantee the best possible standards of quality for IGCL products. The laboratories are facilitated with latest ASTM standard test equipment including sieve shakers and attrition test equipment. The QMS ensures continuous online monitoring and stringent quality checks. The laboratory functions of IGCL could be summarized as below: Raw material analysis- This involves performing a quality check on 6 randomly selected samples of raw material charcoal. This is a part of the pre- production quality check and testing is performed to gauge the moisture content, volatile matter, ash content, and fixed carbon and dust content. Feed charcoal moisture testing- This involves testing the moisture content of the rotary feed charcoal. Since the feed is to the rotary kiln, its very critical to keep the moisture content of the feed within acceptable limits to maintain the temperature within the kiln and hence guarantee a quality discharge material. 7|

IGCL IN ACTIVATED CARBON INDUSTRY

A BUSINESS MARKETING REPORT

Discharge material testing- The output of the kiln is termed as the discharge material and tests are performed on it find its apparent density and CTC specifications. Boiler water analysis- Tests are also performed in the laboratory to analyze the boiler water. This ensures quality for the water used in the boiler that helps in preventing damages like boiler corrosion. The tests involve pH testing, total dissolved salts and hardness measurement. Adsorption tests- Since the product exploits the vital adsorbent quality of activated carbon, number of adsorption tests is also carried out to ensure quality. These involve Iodine no: test, Carbon tetra chloride test and Methylene blue test strictly adhering to the ASTM standards. In addition, the laboratory also gets involved in preparing samples for customer analysis as well as lending technical assistance to its group companies to ensure a consistent maintenance of quality.

5.2 PRICING
The pricing is very competitive and takes into consideration the pricing of the competitors as well. Though typically an IGCL product starts with a base price of Rs.55 per kg, it varies depending on the quality and quantity specifications of the order. Value added products like the impregnated carbon are priced higher in the market and it may go up to above 200 per Kg. Export consignments of IGCL are priced taking into account the corresponding CIF/FOB definitions in the purchase order.

6. ORGANIZATIONAL BUYING DIMENSIONS

The customer base of IGCL could be made to fall in 3 categories, based on a convenient demarcation note such as public sector, private sector and traders. The organizational buying pattern remains more or less the same with the client base, except the PSU clients.

6.1 TENDERING PROCESS BY PSUS

Indo German Carbons limited has some reputed public sector names in its client base like MRPL, ONGC, NTPC, BPCL, IOCL etc. The supplier selection processes followed by these units are primarily based on the tendering process. In the process, tenders are invited from the suppliers based on the requirement scenario at the customer place which will be mentioned in the intimation by the customer. The tender will be required to be filled in two parts by the supplier; one is the Technical bid mentioning the technical specifications and the other being Price bid which includes the commercial terms and conditions. An evaluation of both the bids will be done by the customer to examine the technical and commercial favorability of the supplier offering. An important point to be noted is that the technical bid will always precede price bid in evaluation. Once the technical side is satisfied, a vendor quoting the lowest price would be chosen as the supplier and consequently confirmed with the purchase order. The payment, delivery and general conditions of sale will be mentioned as a part of the tender requirements.

6.2 PRIVATE SECTOR CLIENTS

The firm has built an extensive customer base in the private sector as well and it could be accounted to its reputation and quality excellence in the industry. The firm experiences lot of repeat businesses from its clients which owes to the firms requirement conformances in the past. Since stipulations like tender procedures doesnt govern private sector, the firms reputation, quality and competitive pricing gives it an edge in attracting customers. Unlike an interaction with a PSU client, the purchase interactions with private sector clients are rather flexible bound to series of negotiations until the order is fixed with its commercial and technical aspects.

6.3 TRADERS
Though the company maintains more or less direct selling lines with its customers, the company also sells products to authorized traders which are again based on customized orders. Such trading intermediaries often come into play in dealing with its pharmaceutical clients mainly based in the northern part of India.

8|

IGCL IN ACTIVATED CARBON INDUSTRY

A BUSINESS MARKETING REPORT

7. COMPETITOR ANALYSIS

7.1 NORIT ACTIVATED CARBON

NORIT, founded in 1918, is one of the world's leading producers of activated carbon and related services. The Norit group is headquartered at Zenderen, Netherlands. Apart from Activated Carbon manufacturing, Norit also offers activated carbon reactivation, carbon change out services, and both granular and powdered carbon systems & equipment, membranes and modules for filtration and purification processes, and valves. It serves water, beverage, food, dairy, pharmaceutical, chemical, gas/air, mining, catalyst, sweeteners, and remediation industries. Norit offers its products through a network of agents, distributors, and sales offices in the United States, Canada, South America, Europe, Asia-Pacific, and Africa. Norit activated carbons are produced or reactivated in a multitude of factories in the Netherlands, Italy, the United Kingdom and the United States, with company participation in factories in Mexico and Brazil. Norit produces a vast array of activated carbon types through steam as well as chemical activation by using a wide spectrum of raw materials, such as peat, wood, lignite, coal, coconut shells and even olive pits. In addition to supplying activated carbon, NORITs Systems and Services Group acts as a consultant/ contractor for a full range of equipment for many applications, such as solvent recovery installations, gas and air filters, dust-free dosing equipment and the related transport systems for powdered activated carbons.

7.2 CALGON CARBON CORPORATION

Calgon Carbon Corporation, founded in 1942, is a Pittsburgh, Pennsylvania based companythat offers products and services that remove contaminants and odors from liquids andgases. The food, biotechnology, sanitation, and pharmaceutical industries all utilize products from Calgon Carbon. The company's main operations are centered in North America, but Calgon has a presence in Europe and fully owns the company called Chemviron Carbon. Calgon Carbon divides its operations among 4 segments: 1) The Activated Carbon portion of the corporation, which provides the majority of revenues, manufactures granular, powered, and extruded carbon. These chemicals remove and adsorb organic compounds from liquids and gases. These organic compounds are later burned off at the Pittsburgh plant so the carbon can be reused. 2) The Engineered Systems segments designs and builds carbon absorption systems and ion exchange and separation devices. 3) The Services Options branch of the company provides mobile carbon absorption equipment and also provides for absorption monitoring. 4) The Consumer Products division provides carbon cloth, charcoal, and water purifiers.

7.3 Donau Carbon gmbh & Co. KG

Donau carbon GmbH & Co. KG is a Germany based activated carbon producer headquartered at Frankfurt. The worldwide activities of Donau carbon are supported by various representative offices, co-operation partners and agents in more than 60 countries. Donau Carbon GmbH & Co. KG is active in production, supply and services in connection with activated carbon and adsorbent materials. The product range of Donau carbon includes activated carbon and filters, flue gas cleaning, de-colorizations, reactivation, adsorbents, exhaust air purification, solvent recovery, mixtures of lime/coke. The firm primarily caters to clients belonging to industrial sectors such as food chemistry/technology, environmental engineering, pharmaceutical chemistry etc. Donau Carbon has designed and built more than 2000 air pollution abatement systems and waste treatment plants world-wide. The portfolio comprises exhaust air, natural gas and waste gas purification, solvent recovery plants, incineration plants for solid, liquid and gaseous waste.

Key Point
A close look at the portfolios of firms leading Indo German Carbons Ltd. in the industry or posing a competition to it reveals that they are much more than a mere manufacturer of activated carbon. Firms like Norit, Calgon carbon and Donau carbon excel in and deliver activated carbon products as well as related services. A customer centric approach and servicing abilities have provided these firms a cutting edge in the industry. In addition to the manufacturing of activated carbon, these firms have moved ahead with an approach of 9|

IGCL IN ACTIVATED CARBON INDUSTRY

A BUSINESS MARKETING REPORT

forward integration tapping the popular adsorbent potentials of activated carbon, eg: Carbon adsorption system. Servicing capabilities particularly the carbon re-activation has helped these firms to freshen up ties with its clients on longer terms, hence reaping in considerable repeat business. As a value addition to the clients, a consultative face of these organizations has helped them to be viewed as an activated carbon specialist in the industry. It could be extremely compelling to say that the manufacturing and nonmanufacturing (servicing) capabilities of all these firms seem to complement each others development.

8. MARKET SEGMENTATION
Companies always grow by selecting a group of potentially profitable customers. Selecting the sector or the customers is an important step in the growth of the business of a company. It is where segmentation plays an important role for an organization. Since the product is activated carbon, market segmentation should be done on the basis of the variants of product the organization is supplying. There are basically 2 types of products offered by IGCL, each of them being used for different purposes. So segmentation is done on the basis of the products being offered.

8.1 INDUSTRIES USING POWDERED ACTIVATED CARBON (PAC)

Power Sector One use of activated carbon that may increase greatly in the future is the control of mercury emissions from coal-fired power plants. When implemented, it will reduce mercury emissions by nearly 70%, and many countries are also enacting their own limits for mercury emissions. To meet the final mercury emissions cap, mercury control technologies will be needed. The mercury emission control system would utilize PAC to remove mercury from the flue gas of the power plant. With the increase need for power in the developing as well as in developed countries there is a huge market available and the company can take advantage of the growing opportunity in the power sector. The following are the reasons for the huge market potential in the power sector 44% of the worlds power will be derived from fossil fuels in 2030 World consumption of coal (coal combustion produces mercury) for various purposes in 2020 is approximately 6000 million tones IGCL has already got NTPC has its client and also it is exporting the PAC to US, UK etc. Refineries There are various reasons that substantiate the selection of the refinery sector for the study. As of July, 2005 there are a total of 18 refineries in India comprising 17 in the Public Sector, one in the private sector, a substantial domestic segment for an activated carbon manufacturer to concentrate on. According to a survey, World Crude Oil Refining Capacity was 83.1 million barrels per day. But, to keep pace with rising demand this capacity has to reach the level of 93 million barrels per day by 2010. This means the global Oil Refinery Industry has to grow at an average Growth Rate of 1.8% per year. Varied application of activated carbon in the refining process is worth mentioning. Wide ranging vapor phase and liquid phase applications finds place in the process of refining. Regulatory compliance and the desire to improve product quality are key drivers for the use of activated carbon in refineries. The application of activated carbon appears in the primary process of refineries that does not exhibit considerable differentiation. Vapor Phase Applications Vapor / Solvent Recovery Activated carbon is often used in systems designed for the recovery of economically valuable products (gasoline vapors, benzene, and solvents) at refineries and terminals. Hydrogen Sulfide Removal The processing of sour crude oil often results in the formation of hydrogen sulfide (H2S) at various points in the refinery. Activated carbon is a common technology to control the nuisance odors and corrosion issues that often result from H2S. Liquid Phase Applications Wastewater Treatment Local wastewater discharge permits often regulate organic contaminants (often measured as COD, BOD, TOC, or biotoxicity) that adsorb well onto activated carbon. Treatment may occur via collection of the various wastewaters to a central treatment system, or by treating at point sources. 10 |

IGCL IN ACTIVATED CARBON INDUSTRY

A BUSINESS MARKETING REPORT

Therefore the organization can concentrate on this sector more and target those customers who are setting up more and more refineries. They already have Kochi Refineries and Mangalore Refineries & Petrochemicals Ltd as their clients. With the setting up of Reliance Jamnagar facility in Gujarat and also ONGC exploring more possibilities new windows of opportunity are available.

8.2 INDUSTRIES USING GRANULAR ACTIVATED CARBON (PAC)

Pharmaceutical Industry Activated carbon, or charcoal, is used in pharmaceutical industry primarily as an adsorbent to remove pollutants during the drug manufacturing process. The Asia/Pacific region presents the greatest opportunity for growth, where this market is expected to nearly double by 2010, led by China, which is expected to increase its share of the global activated carbon market to 13 per cent, according to a report. Growing environmental concerns in these regions will also spur new growth in applications such as water treatment, flue gas treatment and hazardous waste remediation. It can be used for removal of organic chemicals, chlorine, lead, unpleasant tastes and odors in effluent or colored substances from gas or liquid streams. Water treatment The global market for drinking water and wastewater disinfection is estimated to hit $3.0 billion by 2012.In certain regions the treatment of the water intended for potable purposes is not necessary at all times during the year. The presence of taste, odor and toxins is dependent largely on the biological action in areas where lake or reservoir supply is common. It is therefore often more cost effective to use temporary or intermittent dosing of activated carbon into the water only during times when treatment is required. Granular activated carbon is typically found in beds or filter columns as a Granular Activated Carbon (GAC) Cap and will treat water continuously when raw water quality problems exist year round. The typical range of environmental water contaminants that activated carbon is used to treat includes: Non-biodegradable organic compounds (COD) Adsorbable Organic Halogens (AOX) Toxicity color compounds and dyestuffs Inhibitory compounds for biological treatment systems Aromatic compound including phenol and bis-phenol A (BPA) Chlorinated/halogenated organic compounds Pesticides Mining Industry Gold typically occurs at very low concentrations in ores - less than 10 g/t or 0.001% (mass basis). At these concentrations the use of aqueous chemical (hydrometallurgical) extraction processes is the only economically viable method of extracting the gold from the ore. Typical hydrometallurgical gold recovery involves a leaching step during which the gold is dissolved in an aqueous medium, followed by the separation of the gold bearing solution from the residues, or adsorption of the gold onto activated carbon. After elution from the activated carbon the gold is further concentrated by precipitation or electrodeposition. Highly activated carbon is used in the dissolved gold recovery process, either by introducing it directly into the CIL (carbon-in-leach) tanks or into separate CIP (carbon-in-pulp) tanks after leaching. The activated carbon adsorbs the dissolved gold from the leach slurry thereby concentrating it onto a smaller mass of solids. The carbon is then separated from the slurry by screening and subjected to further treatment to recover the adsorbed gold. The company already has Hutti Gold Mines Limited as its customer and is exporting the products to UK and other countries.

9. MARKET POTENTIAL
The virgin activated carbon demand for 2007 stood at 890.5 metric tons worldwide.(). The world demands across the continents are: World Demand APAC 11 | 39%

IGCL IN ACTIVATED CARBON INDUSTRY North America Western Europe Other

A BUSINESS MARKETING REPORT 28% 14% 19%

The activated carbon demand is forecasted to rise at 5.2% per annum through 2012. Year 2007 2008 2009 2010 2011 2012 Demand (metric tons) 890.5 936.806 985.5199 1036.767 1090.679 1147.394

The US, China and Japan will continue to account for half of the demand. Western Europe will remain an important, although slow growing market.

10. PROMOTION
Indo German Carbons Ltd. views and promotes its product as a B2B product. Activated carbon purchasers are essentially firms that utilize the product for varied applications in their operations. IGCL promotes its products through industrial magazines and exhibitions, both at the domestic and international level. Companys recent participation in the exhibitions by Everything about Water and Aquatech India is worth mentioning in this regard.

Everything about Water

Everything about water is an exhibition aims at identifying initiatives, building partnerships, making business happen and forging future collaborations in the water sector. Over 300 exhibitors and more than 12,500 visitors from different countries visited the exhibition.

Visitors Profile:
The exhibition is attended by many international companies. Further it is attended by top officials from government and many other Indian firms. The below is is the list of few important visitors 12 | Ministry of Water Resources Ministry of Rural Development and Drinking Water Mission

IGCL IN ACTIVATED CARBON INDUSTRY Irrigation Authorities, Municipal Water Authorities Technocrats, Advisors and Policy Makers Distributors and Dealers Manufacturers and System Integrators Builders, Contractors and Architects Engineering Organizations Operations and Manufacturing Heads Media & Trade Publications

A BUSINESS MARKETING REPORT

Advantages
Direct contact with thousands of potential clients Highly qualified visitors with decision making authority Enormous PR and promotional opportunities Chance to seek out more international partners

11. DISTRIBUTION CHANNEL

Basically being an export oriented unit, delivers products to a customer base spread across the globe. Currently the company exports to 70 destinations in 52 countries spread in 5 continents. IGCL have a US subsidiary in Pittsburgh, namely Indo Carb Corporation, for marketing the products directly to end users. The sales office at Australia has become operational from March, 2010, a strategic sales point location. IGCL maintains a direct distribution channel as far as delivering their products to the clients are concerned. The whole of logistics is in house. There are no intermediaries while selling to all industries. But there are intermediaries only in pharmaceutical industry. The traders in India buy from IGCL on behalf of pharmaceutical clients.

12. CRM
In IGCL they dont employ extensive CRM methods and CRM packages as such. In order to maintain good relation with customers they collect feedback from the customers on a periodic basis.

13. CONCLUSION
The business market consists of all the organizations that acquire goods and services used in the production of other products

that are sold, rented or supplied to others. IGCL could undoubtedly be classified as a business market player as its transactions are of B2B complexion. The firm supplies activated carbon to other organization belonging to varied industries that utilises the product in their operational process for realising their final product. IGCL provide its product to diverse industries such as oil and petroleum refineries, gold recovery firms and mines, chemical and catalyst industries, pharmaceutical industry, purification industry etc. Activated carbon finds application in each of these varied industries as a vital raw material or ingredient in the operational process.

13 |